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Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years.

Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) What is the payback years?

Project A

Time:

0

1

2

3

4

5

Cash flow

$2,500

$950

$930

$820

$600

$400

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